Suppose you are considering an ARM with the following characteristics: Mortgage Amount = $ 350,000 Initial Contract Rate = 5.50% Interest Rate Caps = 2/6 Margin 2.50 Index 1-year TB Yield with a value at the outset of 5.25% Index value at the end of year one and constant for the remaining term = 6.50% Discount Points = 2 Term 30 years Monthly Payments What is the APR for this loan?
Suppose you are considering an ARM with the following characteristics: Mortgage Amount = $ 350,000 Initial Contract Rate = 5.50% Interest Rate Caps = 2/6 Margin 2.50 Index 1-year TB Yield with a value at the outset of 5.25% Index value at the end of year one and constant for the remaining term = 6.50% Discount Points = 2 Term 30 years Monthly Payments What is the APR for this loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose you are considering an ARM with the following characteristics: Mortgage Amount = $ 350,000 Initial Contract Rate = 5.50% Interest Rate Caps = 2/6 Margin 2.50 Index 1-year TB Yield with a value at the outset of 5.25% Index value at the end of year one and constant for the remaining term = 6.50% Discount Points = 2 Term 30 years Monthly Payments What is the APR for this loan?
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